If a country's trade deficit increases, then:
A. it must be buying more assets from foreigners.
B. its consumption must be falling relative to its production.
C. it must be selling fewer assets to foreigners.
D. its consumption must be rising relative to its production.
Answer: D
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
In goods markets ________ and in factor markets ________
A) households sell to firms; firms sell to households B) firms sell to households; households sell to firms C) households sell to firms; households sell to firms D) firms sell to households; firms sell to households
Differentiate between the following three political regimes—monarchy, dictatorship, and representative democracy
What will be an ideal response?
The Keynesian short-run aggregate supply (SRAS) curve is
A) upward sloping. B) vertical. C) horizontal. D) downward sloping.